9 Things That Boost Your Credit Score

1. Have open, active accounts that are in good standing.

Your credit score is a measure of how well you’ve handled credit accounts in the past. You won’t have a good credit score if you don’t have any accounts or if all the accounts are closed or delinquent. Adding good accounts will boost your credit score. That may mean starting over with a secured credit card or another other credit cards for bad credit.

2. Pay all your bills on time - even those that aren't not on your credit report.

The biggest thing influencing your credit score is your payment history. The more timely payments you add to your credit history, the more your credit score will improve. Even one late payment may signal that you haven’t changed your bad credit ways, so be sure to pay on time every time.

3. Keep your accounts out of collections.

Debt collection accounts are one of the most serious types of delinquencies you can have. Since any account – even a small library fine or your kid’s cafeteria fees – has the potential to wind up on your credit report, it’s important that you pay all your debts or at least make payment arrangements with the biller.

4. Reduce your balances and keep them low.

The amount of debt you have is another factor that impacts your credit score in a major way. Lower balances are better for your credit score, so if you have big balances, pay them down. Consumers with the best credit scores have balances less than 10% of their credit scores, so aim to get your balances to that point or lower.

5. Make sure your credit limits are reported correctly.

It’s not just the amount of debt you have that affects your credit score. Credit score calculations compare your credit card debt to the limit on those credit cards. If your credit limits aren’t reported accurately, it can look like you’ve maxed out your credit card. You can dispute inaccurate credit limits with the credit bureau or call your creditor to ask why your credit limit isn’t reported accurately.

Some people ask for credit limit increases as a way to improve their credit utilization – the ratio of your credit card balances to credit limits. But, be careful requesting your limit be increased. Some credit card issuers do a hard pull where an additional inquiry is placed on your credit report and factored into your credit score. Soft pulls are better, but may not be what the creditor needs to process your credit limit increase request.

6. Leave old accounts open and keep them active.

Credit age is important when it comes to your credit score. Your credit score considers both the age of your oldest account and the average age of all your accounts. Keeping old accounts active helps both those numbers.

7. Open new accounts and make new applications sparingly.

When you open a new account, your average credit age is lowered. In addition, the additional inquiry on your credit report can also hurt your credit score. Of course, you can’t completely avoid opening new accounts. That’s actually a necessary step if you’re rebuilding a damaged credit score. Open accounts as you need them.

8. Have different types of accounts.

Your credit score improves when you have experience with various types of credit accounts. That means having both credit cards and installment loans, especially a mortgage, on your credit history. You shouldn’t necessarily take on new accounts, especially large loans you can’t afford, for the sole purpose of boosting your credit score. Instead, open accounts as you need them, but be wise about the types of accounts you open.

9. Get rid of negative information.

Removing negative information from your credit report can boost your credit score, but erasing things from your credit report isn’t easy. You can dispute negative entries that are inaccurate, wait for the credit reporting time limit to pass (usually seven years), or try to get the information furnisher to remove the entry from your credit report with a pay for delete or goodwill offer.